ABSTRACT
This chapter presents a two-step approach for predicting share of wallet (SOW) without survey data. It illustrates the proposed method for the credit card industry who is a primary user of SOW. The chapter presents a case study of a business credit card company in detail, as well as provides SAS subroutines, that readers should find valuable for their toolkits. SOW is a key measure used in implementing marketing strategies as well as in monitoring a company's vitals such as customer loyalty, trends in attrition, retention, and profit. A company develops a market campaign to stir any one of its primary spending categories. In developing the campaign, the company needs to know the SOW for the category of interest for each of its accounts. In practice, the popular approach for predicting SOW is with survey data. Survey data are the source for obtaining the purchases of the other credit cards—the competitor.
